Antisoma executive leaves after drug failure

Antisoma, the cancer specialist whose shares plunged 75% earlier this week after the failure of a key drug, has begun cutbacks, starting with the departure of its chief operating officer.

The company said Dr Ursula Ney left yesterday as part of a wider restructuring following news on Monday that a lung cancer drug it developed with Swiss group Novartis - ASA404 - had failed a phase 3 trial. The restructuring is likely to lead to further job losses and chairman Dr Barry Price said:

I regret profoundly that [Dr Ney] and other talented individuals are leaving because of the news we received this week.

The company had cash and short term investments of £45.1m at the end of February, and it believes that will be enough to see it through to the end of 2011 following the restructuring. It has a couple of other late stage products, including AS1413, to treat leukaemia, which is currently in phase 3 trials. The shares have edged up 0.4p to 8.03p on the news.